Buyers Agent




What You Should Know About Buyer’s Agents Commission

If you are thinking of taking assistance from a Buyer’s agent then the first thing that you need to work out is the commission. In fact, the most frequently asked question from a buyer’s perspective is “How much commission would a buyer’s agent charge?” The truth is that by law, the buyer’s agent is not obligated to discount their commission. The buyer’s agent commission is actually decided by the listing agent and it is always done in consultation with the seller of the real estate property.

If a particular property is being listed exclusively then the listing agent is not required to provide a commission to a buyer’s agent. The entire commission from the sales will go to the listing agent. On the other hand if a listing agent is advertising a real estate property in MLS or multiple listing services then a co-broke commission will come into the picture. This commission will go to the buyer’s agent. The “co-broke commission” for a real estate property is 3% of the price at which it is bought. So if you buy a single family home for $100,000 then the “co-broke commission” will be $3,000. The higher the purchase price of a property or home, the higher will be the commission. Of course, the buyer’s agent will not get the entire commission; they will just get a percentage from it.

If you are hiring a buyer’s agent then you will not be responsible for paying the commission. Basically, the agent’s services will be available to your free of cost. The buyer’s agent commission will be fixed and paid by the listing agent after consulting with the seller of the real estate. This is one of the salient points of hiring the services of buyer’s agent.